Carson, Who Is an Agent for Peter, Breaches His Fiduciary

question 4

Multiple Choice

Carson, who is an agent for Peter, breaches his fiduciary duty to Peter. Carson:

• A) is liable to Peter for breach of contract.
• B) is liable to Peter in tort for any losses caused by the breach.
• C) must make restitution for any profits or property received in breach of this duty.
• D) All of these are correct.

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to firms being price takers.

Tax Exemptions

Deductions from taxable income or specific revenues not subject to taxation, often granted to encourage certain activities or investments.

Patent

Guarantee to an inventor exclusive rights to an invention for 17 years.

Economic System

The organized way a country allocates its resources and distributes goods and services to its citizens, including capitalism, socialism, and communism.